Pensioners
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  • Pensioners

    Pension increases

  • How the increase is worked out

    Each year the government announces the annual percentage increase in prices to the previous September. This is the increase that you will usually receive the following April paid in full by the pension scheme if you are below state pension age. However, if you are over state pension age then part of this increase is paid to you by the state.

    When you reach state pension age, your pension is split into GMP and non-GMP elements. The GMP part is split further into those amounts earned up to and after 5th April 1988. The government pays the full increase on the GMP earned up to 5th April 1988; for GMP earned after this date, your pension scheme pays increases up to 3% a year and the government pays the difference when the increase is more than 3%.

    You will receive the full increase although it may be paid from two sources.

    See Quick Links - Ins and Outs Of GMP and Quick Links - GMP Example for more information.

  • quicklinks